United manager Sir Alex Ferguson said: "Him stepping down is a big loss to me but the fact that he is staying on the board encourages me."

He added: "If I could have found a way of persuading him to stay I would love to have done that. But he has made his decision and I respect him for it."

Gill, a chartered accountant by profession, was named vice chairman of the Football Association in October last year and has been nominated as its candidate in the upcoming Uefa Executive Committee elections in May 2013.

"It has been the greatest privilege to serve Manchester United," said Gill.

"I have worked alongside the finest manager in the history of the game and been part of what I consider to be the best club in the best sport in the world.

"It has been a very hard decision because I love this club and, as the fans' banner says, it is 'more than a religion'.

"I've experienced some incredible highs, such as the Treble in 1999 and the Premier League and Champions League double in 2008, and lows, like losing the title with the last kick of the season last year. But that is what makes this club and this sport so compelling."

Gill's 10 years as chief executive has coincided with record revenues at the club, as well as the takeover of the club by the Glazer family.

Total revenues were up, with income from sponsors particularly strong, though broadcast revenues were down.

United structure from 1 July

Co-chairmen: Joel and Avram Glazer

Executive vice chairman: Ed Woodward

Chief operating officer: Michael Bolingbroke

Group managing director: Richard Arnold

The Old Trafford club still has debts of £366.6m and staff costs rose by more than 10% to £84.5m, mainly because of new player signings and player wage increases.

Gill says his decision to step down and Woodward taking over his responsibilities, will help to "refresh" the club.

Former banker Woodward, 40, joined United in 2005, initially focusing on developing the growth strategy of the club before assuming responsibility for the commercial and media operations in 2007. He was elected to the board of directors the following year.

"I'm delighted Ed has accepted the role," he added. "I have worked with him for more than seven years.

"I am looking forward to continuing my involvement on the club board and I hope to be able to make a contribution to the game on a wider national and European level."

Manchester United are currently top of the Premier League and in the last 16 of the Champions League, drawing 1-1 with Real Madrid in the first leg of their tie.